If Sellers Only Knew…

I recently submitted an offer for a client of mine, and after running a market analysis we decided to submit a number quite a bit off the asking price.  After packaging the offer nicely with a formal offer letter, bank financing letter and complete REBNY financial statement I called the seller’s agent to discuss what we would be presenting, to make our offer submission a bit warmer and to see what intel I could gather about how much the seller might be willing to wiggle on the offer price.

Her response shocked me.

She said “I know the asking price is too high - whenever I launch a listing I just price it wherever the seller wants and then just tell them they have to reduce the price after two weeks of showing.”

What??

I have run into this approach before - agents saying what the seller wants to hear in order to get the listing, and then dealing with adjustments after the fact.  But… this approach means more time on the market with buyers feeling empowered to submit a lower offer as they see the price come down. 

In addition, selling is a stressful process to begin with.  Is there really any need to inject more stress into the process by over promising and then under delivering?

Whenever I have a conversation with someone who is thinking of selling, I spend a lot of time putting together a complete market analysis so we can properly discuss pricing and the competition.  I will visit other apartments on the market to determine how we compare to what else is out there.  And, I will give a realistic range for where we are likely to end up in terms of price with location, building amenities, view, finishes and monthly carrying costs in mind. 

We will discuss how any upcoming work in the building or litigation will impact the sale, as well as uncover anything else that is important to know up front.  There is no need to put an apartment on the market just to drop the price two weeks later or run into challenges that could very well have been avoided.

If you are considering a sale, GET DATA, and as much of it as you can. What other homes have closed recently and how does yours compare?  If the apartment below you, with the same finishes and layout, sold recently and an agent tells you they can get you $100,000 more - how?  

The most common answer an agent will give is about their reach - that they have a big team or that their company has a great platform.  But, with all listings in the city automatically distributed to all major online platforms this answer doesn’t really hold a lot of water.  And, what I have found is that a big team means the person showing your home on any given Sunday might not actually know that much about it, and may not be able to answer buyer’s questions.  Think about it - how many times have you been to an open house, asked for information, and received a response like “I don’t know, this isn’t really my listing.  I am showing this for John, so I’ll have to ask him and get back to you”. 

If you are considering a sale and want a complete market analysis so you are educated about the current sales environment, please don’t hesitate to be in touch.  Getting good, concrete data will help you determine your next steps, and if you decide to put your home on the market I will help make sure the process is as transparent and stress free as possible. Looking forward to connecting!